Full text: Hand-to-mouth buying

LUMBER MANUFACTURERS 
VIEWPOINTS 
WiLL NECESSITATE ESTABLISHMENT OF 
PomNTs OF DISTRIBUTION 
In so basic an industry as lumber, the pres- 
ent tendency of current buying has created 
new problems. Mr. Arcrie D. WALKER, 
secretary of The Red River Lumber Com- 
pany, states that his company has an annual 
capacity of 200,000,000 feet, with offices at 
Minneapolis, San Francisco and Chicago. He 
writes in part as follows: 
‘In certain of the markets there are distributing 
yards who sell lumber exclusively to the retailer, or 
arge manufacturer, and these concerns carry quite 
-onsiderable inventories, and they go quite a ways 
‘n our business towards curing the evil that you 
nention. 
“It is the writer's personal opinion that manu- 
facturers of lumber in particular, and most manu- 
facturers in general will be forced to carry in their 
distant markets a supply of their product, ahead of 
‘he date when it is to be needed 
‘In our business we expect eventually to have 
sizable distribution yards in New York, Philadelphia, 
Baltimore, Pittsburgh and other points throughout 
‘he United States, where our products are consumed, 
so that we can manufacture the year around, at an 
>ven gait, which is, of course, the most economical 
form of production for us, and then be ready to 
supply the market when the stock is needed without 
having to crowd our shipping department, which 
ncludes, of course, the drying kilns and the planing 
nills during the rush period. 
“We already have distributing yards, or retail 
yards in Chicago, Los Angeles, Minneapolis, Reno, 
Nevada and Susanville, California ™ 
[rMPpOsSIBLE FOR LUMBER DEALERS TO AN- 
TICIPATE FAR IN ADVANCE OF 
R BOUIREMENTS 
Mr. M. B. Nerson, the president of the 
Long-Bell Lumber Company, of Longview, 
Washington, one of the largest lumber com- 
panies in the United States, comments as fol 
lows with respect to the situation: 
“Conditions are constantly changing and it is 
therefore necessary for the manufacturer and the 
retailer to change their methods accordingly. It is 
tot possible for anv lumber dealer to anticipate very 
far in advance of his requirements, and when he at- 
:empts to do so by buying stock far in advance of 
ais needs it means that he will have to carry a 
greater amount of slow-selling stock and hence have 
1 greater percentage of shop-worn goods to sell, all 
yf which affects his profits.” 
BUILDING MATERIALS 
A MANUFACTURER WHO Is SUCCESSFUL IN 
MeeTtmve PreSENT-DAY CONDITIONS 
Mr. George Marion Brown, the presi- 
dent of the Certain-teed Products Corpora- 
tion, who are large manufacturers of asphalt 
roofing and shingles, building and insulating 
sapers and felts, paints and varnishes, lino 
ums, felt base floor coverings, oilcloth, gyp- 
sum plaster, etc., has this to say with respect 
to the present current buying tendency: 
“We very strongly believe in the present method 
>f buying in small lots and about as needed by the 
cetail dealers of the country. We think it rather 
rddiculous that great stocks of goods should be car- 
ried when arrangements can be made satisfactorily 
in all of our lines to have quick turnover, very small 
stocks, and still give a very efficient service 
“We have brought this situation about in our 
ines by having varied lines, all of which can be 
sandled by any distributor of our lines. Distribu- 
ors of one or two lines can no longer exist in our 
ines. They formerly bought heavily and ruled the 
susiness. Our distributors are scattered at strategical 
soints throughout the country—about a thousand 
soints. They order our goods in carloads and redis- 
ribute to their nearby dealer trade in small lots, 
with excellent service. The redistribution is mostly 
dy truck and within twenty-five or thirty miles. In 
ordering carloads, the distributor can even up his 
stocks and avoid overstocking. The dealer needs 
ittle more than samples, provided he can wait one 
lav for his goods. 
ProDUCES STANDARDIZED PRODUCTS 
“We produce standard grades in all of our lines, 
ind we have made them standard by good service, 
idvertising and continued use. Luckily for us, we 
are in a line that doesn’t have changes in styles, or at 
east they do not change with the seasons. Linoleum 
ind floortex rug patterns change by improved tastes, 
etc., but the old stocks are cleaned up before the 
new ones are offered. Our accurate records of the 
vast indicate to us, and therefore to our distributing 
rade. about what the demand will be in all of our
	        
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